When will the Federal Reserve cut interest rates? What impact will the rate cut have on cryptocurrencies?

Currently, the widely accepted view in the industry is that the likelihood of a rate cut in July is extremely low, while the probability for September is as high as 70%. This perspective is shared by several top institutions as well.

Comparing with previous rate cut patterns, there tends to be a significant pullback in the two months leading up to the rate cut, followed by a rally after the cut. Therefore, before the upcoming rate cut, each major drop in Bitcoin can actually be seen as an opportunity for positioning.

So why does a rate cut have such a significant impact on the stock market, cryptocurrency market, gold, and other commodities? The fundamental reason behind the rate cut is the reduction in interest rates, which means that the profits from funds stored in banks decrease. Consequently, depositors will seek greater investment opportunities, leading to a flow of capital into stocks, gold, Bitcoin, and various other investment products.

Thus, each significant pullback before a rate cut serves as a very good opportunity for building positions.